The financial year 2025-26 brings significant changes to the Tax Deducted at Source (TDS) regime in India, designed to ease compliance and provide financial relief to taxpayers. From increased thresholds to revised rules for specific transactions, here’s a comprehensive look at the 20 key changes you need to be aware of, effective April 1, 2025.
Key Changes:
- Increased TDS Threshold for Interest Income:
- For senior citizens: The limit has been doubled to ₹1 lakh.
- For general citizens: The limit has been increased to ₹50,000.
- TDS on Lottery Winnings:
- TDS will now be deducted only on individual transactions exceeding ₹10,000.
- Increased TDS Threshold for Insurance Commissions:
- The limit has been raised to ₹20,000.
- Increased TDS Threshold for Mutual Funds and Stocks:
- The TDS threshold on dividend income has increased to ₹10,000.
- TCS changes.
- TDS/TCS for ITR non filers:
- The higher rate of TDS/TCS applied to people who do not file ITR’s is being removed.
- TCS delays:
- Punishments for delays in depositing TCS are being eased.
These changes reflect the government’s commitment to simplifying the tax regime, providing relief to taxpayers, and promoting ease of doing business.
- Source: Click Here
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